Planned Giving

Gifts of Appreciated Securities

The gift of an appreciated asset, often
common stock or mutual fund shares, is a valuable way to make a contribution
to a charitable organization and receive tax benefits based on the value
of the asset(s).

Suppose Richard and Terri had 300 shares
of XYZ Corporation that they purchased at $15 a share some years ago.
The current value in today's market is $36 a share. If they sold the
stock in the market, they would have a taxable, long-term capital gain
on the difference between their cost and what they would receive from
the sale ($36 minus $15 = $21 capital
gain per share. 300 shares X $21.00 = $6,300 in capital gains).

Richard and Terri could sell the stock,
pay the tax on the capital gain, and either keep or donate the proceeds.
If, however, instead of selling the stock, they gave the 300 shares
to charity, they would not incur any capital gains and would be able
to deduct the current value (300 shares X $36 = $10,800) on their tax
return as a charitable gift. By donating the stock, the charity receives
a larger gift than it would receive if Richard and Terri first sold
the stock and then donated the proceeds after deducting the capital
gain taxes. Also, Richard and Terri receive a greater tax deduction
by giving the stock directly to the charity and avoiding the capital
gain tax.

While the gift of appreciated assets often is stock, other marketable assets (called tangible personal property) can be utilized as gifts with the possibility of tax benefits. These are assets such as real estate, antiques, coin or stamp collections, and art. However, these are reviewed on a case-by-case basis. For more information about gifts of any appreciated assets, please contact us so we can respond to your specific needs.

Please
note, individual financial circumstances will vary. The information
on this site does not constitute legal or tax advice. Donor stories
and photographs are for purposes of illustration only. As with all tax
and estate planning, please consult your attorney or estate specialist.
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